The following information is provided to assist in the preparation of the Cash Budget for Valerina for March 2021.

• The cash balance at 1 March 2021 is $25,000.

Budgeted

Sales ($)

Budgeted Purchases ($)

February

170,000

64,000

March

140,000

68,000

• All sales are collected in the same month the sale is made.
• All purchases are made on credit and payments are made as follows:

60% of purchases are paid for in the month of purchase.

40% of purchases are paid for in the month following the purchase.

• The business plans to take out a small business loan of $50,000 at the end of March 2021and will start to repay it back in April 2021.
• Selling and administrative expenses each month are $45,000.

The selling and administrative expensesincludemonthly depreciation expense of $9,000.

• The business plan to expand the business by opening a new store in Burwood, VIC, in May 2021.

A rental deposit of $5,600 is to be made in March 2021.